China Business Guide 中 国 商 务 指 南 2009 （The Light Industry）

Source: China National Light Industry Council

The asset growth ratio of leather, fur, feather/down, and their product industry tended to decline from 2004 to 2008. It peaked at 24.7% in 2004 and stood at 17.6% in 2005, 17.9% in 2007 and 13.7% in the first 11 months in 2008. The asset-liability ratio maintained a steady change, which reached 59.3% in 2004, 58.7% in 2005 and 56.6% in the first 11 months of 2008. The profit grew rapidly. The profit growth rate was 25.6% in 2004, 28.9% in 2006 and 43.1% in 2007. It still kept a growth rate of 31.7% in the first 11 months of 2008. The total industrial output value growth of this industry stood at 21.6% in 2004, 19.8% in 2006 and 16.6% in the first 11 months of 2008. The annual employee growth ratio decreased by 1.0% in the first 11 months of 2008 at the lowest speed in recent 5 years. It peaked at 27.7% in 2004. This ratio basically kept declining in the 5 years.

Figure 5-39 Profit growth of leather, fur, feather/down, and their product industry 2004-2008 Unit: %

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Asset growth ratio	13.7	17.9	14.9	17.6	24.7
Asset-liability	56.6	56.6	56.9	58.7	59.3
Profit growth ratio	31.7	43.1	28.9	38.1	25.6
Growth ratio of total industrial output value	16.6	24.2	19.8	25.2	21.6
Annual employee growth ratio	-1.0	4.6	7.3	8.3	27.7

Source: China National Light Industry Council

The down garment output was 131.820 million pieces in 2004, up by 12.3% on a year-on-year basis and 205.605 million pieces in 2008, up by 13.6% on a year-on-year basis. The light leather output was 51.019 million m² in 2004, up by 16.7%on a year-on-year basis，and 64.204 million m², down by 1.1% on a year-on-year basis in 2008. The leather shoes output was 210 million pairs in 2004, up by 15.1% on a year-on-year basis and 330 million pairs in 2008, up by 3.0% on a year-on-year basis. The leather and fur garment output was 208,000 pieces in 2004, up by 18.0% on a year-on-year basis and 385,000 pieces in 2008, up by 12.1% on a year-on-year basis. The output of the whole industry basically declined in 2008, in which, down garment output saw the sharpest drop while leather and fur garment output still grew fast.

Figure 5-40 Major products output of leather, fur, feather/down, and their product industry 2004-2008

Name	Down garment	Year-on-year increase or decrease	Light leather	Year-on-year increase or decrease	Leather shoes	Year-on-year increase or decrease	Leather and fur garment	Year-on -year increase or decrease
	(10,000 pieces)	(%)	(10,000 m²)	(%)	(100 million pairs)	(%)	(10,000 pieces)	(%)
2008	20560.5	-13.6	6420.4	-1.1	3.3	3.0	38.5	12.1
2007	25253.1	3.2	6838.4	9.2	3.4	14.3	28.8	-7.7
2006	22391.2	37.5	7241.9	29.3	3.1	14.4	20.8	-20.6
2005	15919.1	30.8	5453.1	19.2	2.5	13.9	20.9	-0.5
2004	13182.0	12.3	5101.9	16.7	2.1	15.1	20.8	18.0

Source: China National Light Industry Council

5.8 Cultural, educational and sports goods industry

In 2008, cultural, educational and sports goods industry generated a proportion of 2.7% of total industrial output value of light industry. As a part of light industry, it includes cultural goods manufacturing, sports goods manufacturing, instrument manufacturing, toy manufacturing, and recreation goods and entertainment goods manufacturing.

The number of enterprising involved in cultural, educational and sports goods industry stood at 3,382 in 2004 and increased to 4,231 in 2008. The asset size was 90.7 billion yuan in 2004 and increased to 151.3 billion yuan in 2008. The industrial output value and sales revenue were 121.7 billion yuan and 119.3 billion yuan in 2004 and increased to 216.9 billion yuan and 205.9 billion yuan in November 2008. The contribution margin increased from 4.1 billion yuan in 2004 to 5.4 billion yuan in 2008. The number of employees increased from 108,000 persons in 2004 to 133,000 persons in 2008. The scale of this industry developed rapidly in the 5 years.

Figure5-41 Scale growth of cultural, educational and sports goods industry 2004-2008

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Number of enterprises	4231	4087	3633	3378	3382
Average annual employees (10,000 persons)	13.3	11.9	11.4	11.0	10.8
Total asset（100 million yuan）	1513	1366	1173	1015	907
Total industrial output value（100 million yuan）	2169	2099	1759	1482	1217
Industrial sales revenue（100 million yuan）	2059	2048	1724	1453	1193
Contribution margin（100 million yuan）	54	73	57	52	41

Source: China National Light Industry Council

The industrial output value of cultural, educational and sports goods industry reached 20.9 billion yuan in 2004 and increased to 40.3 billion yuan in 2008.The industrial output value of sports goods manufacturing was 32.5 billion yuan in 2004 and 69.5 billion yuan in 2008. The total output value of instrument manufacturing was 9.2 billion yuan in 2004 and 16.0 billion yuan in 2008. The total output value of toy manufacturing was 54.9 billion yuan in 2004 and 105.6 billion yuan in 2008. The total output value of recreation goods and entertainment goods manufacturing was 4.1billion yuan in 2004 and 7.0 billion yuan in 2008. In 2008, toy manufacturing generated 44% or the largest proportion of output value of the whole industry. Sports good manufacturing accounted for 29%, followed by cultural goods manufacturing, instrument manufacturing, and recreation goods and entertainment goods manufacturing.

Figure5-42 Total output value of major sectors of cultural, educational and sports goods industry 2004-2008

Unit: 100 million RMB

Item	2008	2007	2006	2005	2004
Cultural goods manufacturing	403	389	315	264	209
Sports goods manufacturing	695	575	506	401	325
Instrument manufacturing	160	142	121	103	92
Toy manufacturing	1056	931	764	673	549
Recreation goods and entertainment goods manufacturing	70	62	53	42	41

Source: China National Light Industry Council

The sales costs of cultural, educational and sports goods industry increased from 104.0 billion yuan in 2004 to 182.0 billion yuan in the first 11 months of 2008. Among that, the sales cost was 147.7 billion yuan in 2006 and 174.6 billion yuan in 2007, up by 18.2% on a year-on-year basis. The sales cost increased by 13.9% on a year-on-year basis in the first 11 months of 2008. The management expense was 6.7 billion yuan in 2004, up by 30.7% on a year-on-year basis, and 9.9 billion yuan in 2008, up by 11.5% on a year-on-year basis. The management expense peaked at 10.3 billion yuan in 2007, up by 16.9% on a year-on-year basis at the fastest speed in recent 3 years. The financial expense was 700 million yuan in 2004, up by 21.1% on a year-on-year basis, 1.0 billion yuan in 2005, up by 29.7% on a year-on-year basis, 1.3 billion yuan in 2006, up by 32.1% on a year-on-year basis and 1.7 billion yuan in 2007, up by 39.2% on a year-on-year basis. It was 1.6 billion yuan in the first 11 months of 2008, up by 10.5% on a year-on-year basis. The growth ratio saw an obvious drop in 2008.

Figure5-43 Costs and expenses of cultural, educational and sports goods industry 2004-2008

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Sales costs (100million RMB)	1820	1746	1477	1255	1040
Year-on-year growth (%)	13.9	18.2	17.7	20.7	31.1
Management expenses (100million RMB)	99	103	88	77	67
Year-on-year growth (%)	11.5	16.9	14.5	14.3	30.7
Financial expenses (100million RMB)	16	17	13	10	7
Year-on-year growth (%)	10.5	39.2	32.1	29.7	21.1

Source: China National Light Industry Council

The asset growth ratio of cultural, educational and sports goods industry kept stable from 2006 to 2008. It peaked at 27.5% in 2004 and dropped to 11.9% in 2005. It stood at 16.5% in 2007 and 15.6% in the first 11 months in 2008. The asset-liability ratio maintained a steady change, which reached 54.0% in 2004, 53.6% in 2005 and 54.4% in the first 11 months of 2008. The asset-liability ratio maintained almost the same in recent 3 years. The profit growth kept stable from 2005 to 2007. The profit growth rate was 11.6% in 2004, 29.0% in 2005, 9.5% in 2006 and 27.7% in 2007. But it dropped sharply to 5.5% in the first 11 months of 2008. The total industrial output value growth of this industry stood at 26.0% in 2004, 18.7% in 2006 and 12.0% in the first 11 months of 2008. The annual employee growth ratio was 8.3% in the first 11 months of 2008 at the lowest speed in recent 4 years. The ratio reached top of 23.4% in 2004.

Figure 5-44 Profit growth of cultural, educational and sports goods industry 2004-2008 Unit: %

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Asset growth ratio	15.6	16.5	15.6	11.9	27.5
Asset-liability	54.4	53.5	53.8	53.6	54.0
Profit growth ratio	5.5	27.7	9.5	29.0	11.6
Growth ratio of total industrial output value	12.0	19.3	18.7	21.8	26.0
Annual employee growth ratio	8.3	4.3	4.2	2.1	23.4

Source: China National Light Industry Council

The output of fountain pen approached 115.52 million in 2004, up by 22.5% on a year-on-year basis. It stood at 1165.701 million in 2008, up by 7.6%on a year-on-year basis. The output of wood pencil reached 12.76 billion, down by 3.9% on a year-on-year basis in 2008. It was 8.92 billion, up by 6.2% in 2004. The output of notebooks and brochures was 1.06 billion pieces, up by 4.1% on a year-on-year basis in 2004. It reached 6.28 billion pieces, up by 28.2% on a year-on-year basis in 2008.

Figure 5-45 Major products output of cultural, educational and sports goods industry 2004-2008

Name	Fountainpen	Year-on-year increase or decrease	Wood pencil	Year-on-year increase or decrease	Notebooks and brochures	Year-on- year increase or decrease
	(10,000 pieces)	(%)	(100 million pieces)	(%)	(10,000 pieces)	(%)
2008	116570.1	7.6	127.6	-3.9	627942.6	28.2
2007	13705.3	35.7	134.9	8.4	444278.4	18.5
2006	10632.6	9.7	99.9	2.3	312362.2	6.6
2005	10186.1	11.2	103.9	9.1	276731.5	20.8
2004	11552.2	22.5	89.2	6.2	105537.6	4.1

Source: China National Light Industry Council

5.9 Arts and crafts industry

In 2008, arts and crafts industry generated 4% of the total industrial output value of light industry. Arts and crafts industry is a distinctive sector of light industry. It mainly includes sculpture handicrafts manufacturing, metal handicrafts manufacturing, lacquer handicrafts manufacturing, flower and painting handicrafts manufacturing, natural plant fibrage handicrafts manufacturing, drawn work handicrafts manufacturing, carpet and tapestry manufacturing, jewellery and accessories manufacturing and other handicrafts manufacturing.

From 2004 to November 2008, the number of arts and crafts industry enterprises increased from 3,536 to 4,754. The asset size increased from 69.2 billion yuan to 135.3 billion yuan. The total industrial output value increased from 111.6 billion yuan to 260.3 billion yuan. The industrial sales value increased from 108.2 billion yuan to 254.3 billion yuan. The contribution margin increased from 4.2 billion yuan to 11.3 billion yuan. The employees increased from 88,000 to 91,000. The scale and level of arts and crafts industry has leaped forward during the 5 years.

Figure 5-46 Scale growth of arts and crafts industry 2004-2008

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Number of enterprises	4754	4573	4119	3661	3536
Average annual employees (10,000 persons)	9.1	9.7	9.9	9.3	8.8
Total asset（100 million yuan）	1353	1260	998	849	692
Total industrial output value（100 million yuan）	2603	2378	1756	1439	1116
Industrial sales revenue（100 million yuan）	2543	2326	1723	1414	1082
Contribution margin（100 million yuan）	113	111	82	62	42